PZU buys insurance operations in Baltics and Poland from Britain's RSA
April 18, 2014
PZU CEO Andrzej Klesyk
Poland's top insurer PZU will buy three insurance companies in the Baltic states as well as its rival Link4 from troubled British peer Royal & Sun Alliance Insurance plc (RSA), in the biggest foreign acquisition by a Polish financial company.
PZU will pay a combined EUR 360 million for Lietuvos Draudimas AB in Lithuania, Latvia-based AAS Balta, the Estonian branch of Codan Forsikring A/S and Warsaw-based Link4 Towarzystwo Ubezpieczen SA.
“Today’s takeover is part of our expansion strategy and should help us solidify our leading position in the region,” PZU CEO Andrzej Klesyk said at a news conference in Warsaw on Thursday.
Buying Link4 will complement PZU's strategy and allow it to reach a new group of clients, Klesyk had earlier said.
"Building a new brand from scratch would be difficult, costly, time-consuming and would be burdened by considerable risk," he said.
In the wake of the transactions PZU will be the leader of the Lithuanian and Latvian insurance market and will take a third position in Estonia, PZU CEO wrote on Twitter Thursday morning.
The acquisition could be a springboard for further expansion in the Baltics, Unicredit CAIB analyst Pawel Kozub told the daily Parkiet.
The deals are subject to approval by anti-monopoly authorities of the respective countries, PZU's filing showed.
All transactions are due for completion in H2 2014, according to the RSA statement.